The ongoing nationwide strike in Nigeria, initiated by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), which began on June 3, 2024, as a result of the failure of the tripartite committee to agree on a new minimum wage for Nigerian workers and demand for reversal of electricity tariff increment is biting hard on the economy and crippling businesses.

The strike was triggered by the Federal Government’s refusal to raise the proposed minimum wage from N60,000, with workers demanding N494, 000.

However, the Nigeria Medical Association (NMA) in Kano state has opted out of the strike, but other sectors, including universities, are actively participating in the industrial action in the state.

On the impacts on economy and businesses, the nationwide strike has disrupted economic activities across various sectors, with workers staying away from their jobs, production, services, and commerce are affected. Industries such as manufacturing, transportation, banking, and retail experience reduced productivity due to absenteeism as analysts say the strike could lead to financial losses for businesses and investors.

Already, there are supply chain disruptions in the country as supply chains rely on a smooth flow of goods and services. The strike has disrupted this flow, affecting both local and international trade as importers and exporters face delays in shipments due to port closures and transportation disruptions.

As a result of the strike, many businesses have temporarily closed their doors and small businesses, in particular, may struggle to cope with prolonged closures and restaurants, shops, and other service providers face revenue losses.

The strikes by the labour unions may create uncertainty for investors as the current instability caused by labour actions can deter foreign investment. Investors may hesitate to commit capital to projects or ventures until there is clarity on labour relations.

As government relies on taxes from businesses and workers, the reduced economic activity during the strike affects tax collection, particularly if prolonged.

This loss of revenue would impact public services such as healthcare, education, and infrastructure development.

A prolonged strike actions can lead to social unrest as frustrations mount among workers and citizens as demonstrations, protests, and clashes with security forces may escalate if negotiations remain deadlocked.

The demands of the workers’ unions during the ongoing nationwide strike in Nigeria are centered around better wages and improved working conditions as the unions are calling for an increase in the minimum monthly wage from its current level of around N30,000 while the government and private sector have offered N57,000, labour representatives initially demanded N615,000 but have now reduced their demand to about N494,000 per month.

The workers are also demanding the rreversal of electricity tariff hike as the increase in electricity costs has been a significant concern for citizens and workers.

The strike aims to pressure the government to address these critical issues and ensure fair compensation for Nigerian workers.

The Nigerian government has responded to the workers’ unions’ urging workers to return to work, promising to address the concerns raised by the unions.

The federal government has called for an emergency meeting of the tripartite committee on the new national minimum wage. According to media reports, the meeting, convened through the National Salaries, Incomes and Wages Commission (NSIWC), is scheduled for Tuesday, 4 June.